Pershing Square Up 6% In First Quarter

Apr 4 2013 | 12:44am ET

Pershing Square Capital Management withstood big losses on two of its most prominent investments to post a 6% gain in the first quarter.

The New York-based hedge fund rose 2.5% last month, the New York Post reports.

That Pershing Square enjoyed any gains is impressive, given the dismal performance of its headline investments. Nutritional supplements company Herbalife, which Pershing Square founder William Ackman has called a pyramid scheme and which the hedge fund has a $1 billion short against, saw its shares surge 14% on the quarter. And retailer J.C. Penney, which Pershing Square owns 17% of, dropped 23% during the first three months of 2013.

Pershing Square still has a roughly $240 million paper profit on its Herbalife short, which it took at the end of last year. It has lost approximately twice as much over the life of its Penney investment.

The hedge fund was saved from a first-quarter disaster by holdings such as Canadian Pacific Railways, which rose 28% in the first quarter, and Procter & Gamble, which rose 13.5%.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of